Colliers has released a research report titled "Reinventing Central: Why the Office Market Is Returning to the Core Business District," noting that the recovery pace of Hong Kong's Central office market is clearly outpacing the overall market, driven primarily by a rebound in capital markets, expansion in the financial services sector, and continuously rising demand for high-quality office space.
The report states that Central regained growth momentum in 2024, with net absorption totaling approximately 612,000 square feet between 2024 and 2025, while the first eight months of this year alone recorded more than 500,000 square feet of positive absorption. Meanwhile, Central's market performance has also continued to outperform the overall Grade A office market. The vacancy rate fell from 15.1% in December 2024 to 9.9% in August this year, significantly below the 15.8% vacancy level across all Grade A offices in Hong Kong.
On the rental front, Central rents rose 8.7% cumulatively in the first eight months of this year, while rents for top-tier Grade A offices climbed 15.4%, far above the 0.3% recorded across the overall Grade A office market. Leasing performance at several landmark commercial buildings has been particularly outstanding, with Two IFC and One IFC nearly fully leased since June, while the occupancy rate at The Henderson had already exceeded 90% by August.
Another report, the "Hong Kong Office Tenant Survey 2026," shows that corporate business confidence has returned to positive levels. 41% of respondents expect the business environment to improve over the next 12 months, while only 16% anticipate a downturn. Although 35% of tenants expect to increase headcount in the coming year, only 20% plan to expand their office space, with professional services as well as banking and finance most likely to expand, reflecting a gradually widening gap between companies' hiring intentions and their office space needs, as many businesses absorb growth demand within existing offices through more efficient use of current space and adjustments to workplace strategy.
Cost remains the most important consideration in leasing decisions. Whether selecting a commercial building or a district, rental level is the primary consideration, followed by building quality and transportation convenience. The survey also found that 68% of surveyed tenants plan to renew their leases in their existing offices, reflecting that market leasing activity remains dominated by renewals. Among major office submarkets, tenants in Tsim Sha Tsui and Kowloon East showed the highest intention to stay in their districts, with 88% and 87% of respondents respectively indicating a preference to remain in their original areas after their leases expire.